Blackstone Inc. agreed to buy control of Emerson Electric Co.’s climate technologies arm in a deal valuing the business at about $14 billion.
The private equity firm will acquire a majority stake in the unit, which sells the Copeland line of compressors used in heating and cooling equipment, according to a statement Monday. St. Louis-based Emerson will receive upfront pretax cash proceeds of around $9.5 billion and keep a 45% stake.
Emerson plans to use the proceeds for “strategic M&A to strengthen and diversify its automation portfolio in four targeted adjacent markets,” the company said, adding that it expects to return cash to shareholders via its dividend and around $2 billion in share buybacks next year.
Read more: Private Equity Wire
